EBRD maintains Russia’s 2018–2019 GDP growth forecast at 1.5%

LONDON, Nov 1 (PRIME) -- The European Bank for Reconstruction and Development (EBRD) has maintained its forecast for the growth of Russia’s gross domestic product (GDP) in 2018–2019 at 1.5% per year, the bank said in its Regional Economic Prospects report released on Thursday.

The rise will happen due to restoration in private consumption and investment, and also due to high oil prices.

The EBRD said again that without significant reforms, Russia’s GDP growth will remain within the 1–2% annual range in the long term due to low investment and outdated production capacities, the weak demographic situation, old infrastructure, and unfavorable institutional aspects of the economy. The negative impact of the U.S. and E.U. sanctions will limit the support from rising oil prices, the EBRD said.

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